AMARKUMAR ANUPBHAI DESAI,NADIAD V. I.T.O. WARD 1, NADIAD , NADIAD

ITA 793/AHD/2025

AI Insights

This case involves an appeal by Amarkumar Anupbhai Desai against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs. 29,29,500 as unexplained income. The assessee had declared this amount as exempt agricultural income, which was not substantiated with adequate documentation. The Assessing Officer had rejected the claim due to lack of sale bills or receipts proving agricultural activity. The CIT(A) dismissed the appeal due to non-appearance and non-compliance by the assessee. The Tribunal, however, noted procedural lapses in the handling of the appeal and the impact of the pandemic on the assessee's ability to comply with the procedural requirements, leading to the decision to restore the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717628 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 16-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIK SHARMA
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Keywords: Condonation of delay; Principle of natural justice; Earning of tax free income
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.793/Ahd/2025 (Assessment Year: 2017-18) Amarkumar Anupbhai Desai, Man Bhuvan, Bhausaheb Building Desai VAgo, Nadia, Gujarat-387001 Vs. Income Tax Officer, Ward-1, Nadiad [PAN No.AJIPD5602N] (Appellant) .. (Respondent) Appellant by : Adjournment Application filed Respondent by: Shri Pratik Sharma, Sr. DR Date of Hearing 05.08.2025 Date of Pronouncement 12.08.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 20.06.2024 passed for A.Y. 2017-18. 2. The assessee has raised the following grounds of appeal: “1. Thea assessment order passed u/s 144 of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority u/s 250 is bad in law and deserved to be uncalled for. 2. The appellate authority has erred in law and on facts in making and confirming respectively the addition of RS.29,29,500/-, sustained by the first appellate authority. The same deserves to be deleted. 3. The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing.” Printed from counselvise.com ITA No. 793/Ahd/2025 Amarkumar Anupbhai Desai vs. ITO Asst. Year –2017-18 - 2– 3. The brief facts of the case are that the assessee filed his return of income declaring a total income of ₹86,540/- along with exempt agricultural income of ₹29,29,500/-. In the course of scrutiny assessment, various notices of hearing were served on the assessee, but the remained un-complied with. Finally, on 27.11.2019, the assessee filed partial submissions and sought an adjournment. However, the Assessing Officer noted that there was still no full compliance by the assessee, and therefore a show cause notice proposing addition/disallowance was issued on 22.12.2019, requiring a reply by 24.12.2019. In response, the assessee stated that he is a landlord and derives agricultural income. The Assessing Officer required the assessee to furnish details of his agricultural income and cash deposits during the demonetization period. The assessee presented a cash book and submitted that that the cash on hand and deposits were sourced from agricultural income, with some cash having been retained for use by small farmers. However, the Assessing Officer observed that while the assessee deposited ₹8,36,229/- in cash during F.Y. 2015-16, the deposits increased significantly to ₹51,27,000/- during F.Y. 2016-17. The assessee claimed to have made cash sales of ₹25,18,600/- and ₹42,38,700/- in those respective years. However, despite repeated opportunities, the Assessing Officer noted that the assessee failed to furnish supporting documentary evidence such as agricultural produce sale bills or related receipts to substantiate the claim of having earned any exempt agricultural income. Although landholding details were eventually provided by the assessee, however, the Assessing Officer rejected the assessee’s claim of agricultural income amounting to ₹29,29,500/- as exempt income due to lack of sale documentation and proof of agricultural activity. Accordingly, the agricultural income which was claimed as exempt by the assessee was Printed from counselvise.com ITA No. 793/Ahd/2025 Amarkumar Anupbhai Desai vs. ITO Asst. Year –2017-18 - 3– held to be unexplained income and added back to the total income of the assessee. 4. In appeal, Ld. CIT(A) dismissed the appeal of the assessee on account of non-appearance, with the following observations: “3.2 During the appellate proceedings, the appellant was granted many opportunities for presenting his case and filing detailed submission in support of various grounds of appeal taken by him. However, on none of the occasions, the appellant chose to file a submission or filed any documents, evidences or even requested for adjournment. It may be noted that in the faceless appeal environment, all the notices are issued to the appellant at the email address provided by him, and also, all the submission are supposed to be filed online through the appeal module available to the appellant online in his e-filing portal. In this electronic communication environment, the emails/notices/letters are routed through the NFAC, and the appellant is expected to respond through the same environment. 3.3 Having noted thus, it is a fact that the appellant chose not to submit anything in response to various notices issued to him thereby giving him ample opportunity of hearing, which is also in accordance to principle of natural justice. The table below list the various dates of issuing of notices, dates of hearing/submission granted to the appellant and the response of the appellant: Sl. No. Date of fixing/notice Date of hearing Reasons offered by appellant 1. 25.01.2021 09.02.2021 No compliance 2. 28.03.2024 12.04.2024 No compliance 3. 16.04.2024 01.05.2024 No compliance 4. 10.05.2024 27.05.2024 No compliance 3.4 It is very clear form the above table that the appellant has chosen not to submit anything in support of his various grounds of appeal. In such a scenario, I am of the considered opinion that the appellant does not have anything to say or have anything to offer to the appellate authority in support of his various grounds of appeal, and thus, that the appellant does not want to press any of the grounds of appeal. In light of this, I do not see any reason to interfere with the findings of the AO as enumerated in the assessment order. 3.5 I, therefore, dismiss all the grounds of appeal filed by the assessee. 4. In the result, the appeal is dismissed.” 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A), confirming the addition made by the Assessing Officer. Printed from counselvise.com ITA No. 793/Ahd/2025 Amarkumar Anupbhai Desai vs. ITO Asst. Year –2017-18 - 4– Before us, at the time of hearing, none appeared on behalf of the assessee and an adjournment application was submitted. Further, it is also noted that the appeal is time barred by 228 days and no application for condonation of delay or supporting Affidavit has been furnished by the assessee before us. However, on looking into the case records, we observe that no appearance was made by the assessee before the Assessing Officer. However, Ld. CIT(A) proceeded to close the appellate proceedings, without discussing the grounds of appeal raised by the assessee and dismissed the appeal of assessee on account of non-appearance. Further, on perusal of the notices issued by the Ld. CIT(A), it is seen that the first notice was issued on 25.01.2021 i.e. during the pandemic period and the subsequent notices were issued within a short span of one and a half months between 28.03.2024 to 10.05.2024 and accordingly, in our view, looking into the short span of successive notices, the assessee did not get effective opportunity of presenting his case on merits. Accordingly, looking into the quantum of additions made in the hands of the assessee, in the interest of justice, the case is hereby directed to be restored to the file of Assessing Officer for de-novo consideration. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 12/08/2025 Sd/- Sd/- (DR. BRR KUMAR) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 12/08/2025 TANMAY, Sr. PS TRUE COPY Printed from counselvise.com ITA No. 793/Ahd/2025 Amarkumar Anupbhai Desai vs. ITO Asst. Year –2017-18 - 5– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 07.08.2025 2. Date on which the typed draft is placed before the Dictating Member 08.08.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 08.08.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 12.08.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 12.08.2025 7. Date on which the file goes to the Bench Clerk 12.08.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "